Mortgage Interest Relief

J

Joeytheboy

Registered User
Messages
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I'm currently receiving mortgage interest relief on my house which I bought 3 years ago, the thing is that I'm going to be moving to live and work abroad for a year or two in January, I'm wondering will I still qualify for the interest relief next year? it's my only house in Ireland.
 
I assume you plan to rent out the house while abroad and earn some rental income, in which case you will no longer be entitled to this form of relief. Why? because its only available to owner occupiers.

What you will have instead is an entitlement to offset interest accrued against rental income received, before arriving at your taxable rental income. This is discussed in other threads on a daily basis so do a search.

Secondly you may be subject to a clawback of stamp duty which you may have been exempted from 3 years ago. This clawback arises when you let the house within 5 years of purchase. Again this is discussed regularly so do a search

lastly this temp. departure will not effect your entitlement to avail of full exemption from CGT on subsequent diposal called PPR relief

best of luck
 
Thank alot bazermc,
Well ok so I can't rent it out and receive mortgage interest relief, what if I just leave it vacant will I then be entitled to it? It may save me the hassle of renting, even though I wouldn't make as much money, but then it's tough because I wont really be able to keep an eye on the place. I wont be suject to stamp duty as I bought the house for less than 127000, its good to know that I wont have to pay cgt also if I need to sell it.. thanks again.
 
Joeytheboy said:
Thank alot bazermc,
Well ok so I can't rent it out and receive mortgage interest relief, what if I just leave it vacant will I then be entitled to it?

NO, YOU NEED TO BE OWNER AND OCCUPIER - IF YOU RENT THE HOUSE THE RELIEF IS WORTH MORE AS IT WILL POTENTIALLY REDUCE INCOME TAXABLE AT 42%!

It may save me the hassle of renting, even though I wouldn't make as much money, but then it's tough because I wont really be able to keep an eye on the place.

CASHFLOW ISSUES HOW WILL YOU PAY MORTGAGE WITHOUT A RENT STREAM FROM THE PROPERTY

I wont be suject to stamp duty as I bought the house for less than 127000,
FAIR ENOUGH NO STAMP DUTY ON PROPERTY LESS THAN 127k...ITS NOT A HOUSE IN DUBLIN I TAKE IT

its good to know that I wont have to pay cgt also if I need to sell it.. thanks again.
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